The index follows a free float-adjusted market cap weighting methodology, with a weighting of each individual index constituent capped at 1,5%, while weighting of each BSE sector is capped at 20%.

Background

A disinvestment target of Rs 72,500 crore for the current fiscal has been set by Prime Minister Narendra Modi.

Out of which Rs 46,500 crore is to be raised through disinvestment mode, while Rs 15,000 crore is the target in the case of strategic disinvestment that involves the surrender of government's majority control of the company.

The government had earlier approved the alternative mechanism through the ETF route to divest its stake in CPSEs.

Features of ETF

Many leading companies are part of this. The private sector having an exposure of 39 percent to the fund while the rest are public sector firms.